Investigating the Effects of Environmental Uncertainty, Business Strategy and Management Control Systems on Organisational Learning and Performance

ABSTRACT This study investigates the effects of environmental uncertainty, business strategy and management control systems on organisational learning and business performance. This study finds that environmental uncertainty is positively related to the intensity of the product differentiation strategy, and the intensity of the product differentiation strategy is positively (negatively) related to the use of nonfinancial (financial) performance measures. Concerning levers of control, this study finds positive associations between the intensity of levers of control and the use of financial and nonfinancial measures. Furthermore, the intensity of levers of control has a positive impact on organisational learning, leading to superior business performance.